The Partial Settlement Agreement is a strategic legal instrument used when parties wish to compartmentalize their disputes and achieve partial resolution while maintaining their positions on other issues. This document type is particularly valuable in complex commercial situations where full settlement is not immediately achievable or desirable. Common scenarios include multi-faceted disputes where certain aspects can be resolved more readily than others, or where immediate partial resolution provides commercial benefits to all parties. The agreement must be carefully drafted to comply with Hong Kong law, clearly delineating between settled and reserved matters to prevent future disputes about the settlement's scope. It typically includes detailed provisions about payment terms (if applicable), releases for settled matters, and explicit preservation of rights for unsettled issues. This document type is especially relevant in Hong Kong's business environment, where complex commercial relationships often require flexible dispute resolution approaches.
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1. Parties: Identifies all parties to the agreement, including their full legal names, addresses, and any relevant registration numbers
2. Background: Outlines the dispute context, existing proceedings (if any), and the parties' intention to partially settle certain matters
3. Definitions and Interpretation: Defines key terms used in the agreement and sets out interpretation rules
4. Settled Claims: Clearly identifies and describes the specific claims or matters being settled under this agreement
5. Settlement Sum: Specifies the settlement amount (if any) and payment terms
6. Reserved Rights: Explicitly preserves rights and claims not covered by this partial settlement
7. Release: Details the scope of mutual releases for settled matters only
8. Confidentiality: Sets out confidentiality obligations regarding the settlement terms
9. Non-Admission: States that the settlement does not constitute admission of liability
10. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for dispute resolution
11. Entire Agreement: Confirms this document represents the entire agreement regarding the settled matters
12. Counterparts: Allows execution in counterparts
13. Costs: Addresses legal and other costs related to the settled matters
1. Tax Implications: Include when settlement involves significant monetary compensation or has tax implications
2. Third Party Rights: Include when settlement affects rights of third parties or when explicitly excluding third party rights
3. Interim Arrangements: Include when temporary measures are needed pending resolution of unsettled matters
4. Stay of Proceedings: Include when existing legal proceedings need to be stayed for settled matters
5. Continuing Obligations: Include when certain obligations continue beyond the settlement
6. Future Cooperation: Include when parties need to cooperate on remaining unsettled matters
7. Insurance and Indemnities: Include when settlement involves insurance claims or specific indemnities
8. Variation: Include when specific rules for varying the agreement are required
1. Schedule 1 - Settled Claims: Detailed list and description of all claims being settled
2. Schedule 2 - Reserved Claims: Detailed list and description of all claims specifically reserved
3. Schedule 3 - Settlement Payment Schedule: Payment terms, installments, and deadlines if applicable
4. Schedule 4 - Related Proceedings: List of any related legal proceedings and their status
5. Appendix A - Supporting Documents: Key documents referenced in the settlement
6. Appendix B - Form of Release: Template release document if separate releases are required
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